Silver Lake buys $500m stake in Credit Karma
29 March 2018 | 9879 views | 0
Private equity firm Silver Lake is buying a $500 million stake in personal finance technology outfit Credit Karma from existing investors.
The so-called secondary investment gives Silver Lake a "significant" minority stake in Credit Karma, although the fintech firm's founder Kenneth Lin will remain the largest shareholder and continue in his role as CEO.
Now more than 10 years old, Credit Karma started out offering credit scores, reports and monitoring to Americans who, in exchange, see personalised offers from advertisers based on their credit profiles.
It now offers a whole suite of personal finance services to more than 80 million North Americans and has originated more than $40 billion in credit products including credit cards, personal loans, mortgages, automotive financing, and student loan refinancing.
Consistently ranked the number one finance app in the US, the Silver Lake agreement is thought to value Credit Karma at around $4 billion.
Says Lin: ""As we planned for the future and our continued growth, we sought a partner that could support our growth trajectory and provide existing investors an opportunity to lock in some of the rewards they've earned for their support and hard work."